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In 2003, Tata Consultancy Services set itself a mission: Top Ten by 2010 . In 2009, a year ahead of schedule, TCS made good on that promise: in fourteen years, the company had transformed itself from the $155 million operation that S. Ramadorai inherited as CEO in 1996. Today it is one of the world s largest IT software and services companies with more than 240,000 people working in forty-two countries, and annual revenues of over $10 billion.
The TCS story is one of modern India s great success stories. In this fascinating book, S. Ramadorai, one of the country s most respected business leaders, recounts the steps to that extraordinary success, and outlines a vision for the future where the quality initiatives he undertook can be applied to a larger national framework.
- Sales Rank: #2905066 in Books
- Published on: 2013-02-12
- Original language: English
- Dimensions: 8.50" h x .83" w x 5.55" l, .55 pounds
- Binding: Paperback
- 304 pages
Review
A chronicle of India s journey into the digital age . . . breathtakingly audacious --Hindustan Times
An insider s account --Businessworld
Provides a deep insight into the Indian IT industry and the beginnings of the offshoring model --Business Standard
About the Author
Subramaniam Ramadorai retired as CEO & MD of Tata Consultancy Services in 2009, after serving the company for thirtynine years; he continues to work with TCS in the capacity of ViceChairman, and is actively involved as Chairman/Director of various Tata and nonTata companies and educational institutions.
Most helpful customer reviews
11 of 12 people found the following review helpful.
Story of India's IT industry
By Prasad Ganti
Ram, as the former CEO is known as, tells the story of TCS (Tata Consultancy Services), with its humble beginnings in the late 1960s as a data processing unit for Tata Group Companies, mainly Tata Electric. In a span of 4 decades, it grew into a top ten IT services companies in the world (based on revenue, profitability, number of people, and market capitalization). A truly global company with a presence in many countries and $6 billion in revenues and gainfully employing 160,000 people worldwide. Mainly as a result of some strategy, some coincidence, and adherence to the principle of doing more with less. Ram describes how TCS became an iconic spearhead of India's IT industry with its global pre-eminence.
Immediately after its setup, TCS was forced to look outside of Tata Group for business, as a supplement to meet its costs and to ensure sustainability. Added to this was the Indian government's Foreign Exchange Regulation Act (FERA) which placed severe restrictions on importing of hardware or software. Imports required waddling through a bureaucratic morass, in addition to paying enormous duty, with an attached string of exporting goods or services equal to several times the value of the imports. This forced TCS to look for business outside of India. The initial steps were really baby steps because IT industry was almost non-existent in India and globally it was a tough sell. TCS not only had to sell the company, but also had to sell India's image. These restrictions engraved the core value of doing more with less, carrying it into recent times where the restrictions have diminished significantly in magnitude.
The initial collaboration with Burroughs helped in importing hardware and supporting the hardware and software. It also paved the way for small conversion projects at the lower end of the value chain. Soon other vendors like IBM and Tandem followed. With clients like IGIC (Institutional Group Information Corporation) and American Express in the US, SEGA of Switzerland, WTSL (Western Trust) in UK, TCS started establishing itself in the 1980s as a systems integrator in the financial services industry. These experiences helped TCS develop applications for India's fledgling National Stock Exchange (NSE) in 1994. It is the third largest stock exchange in the world and one of the few trading all types of securities on a single platform (wholesale debt market, capital market, futures and options market). In 1996, it followed up with applications for National Securities and Depositories Ltd (NSDL). Thus the Indian IT market started taking off.
What distinguished TCS from other IT companies in India was the initial investment in setup of an R&D wing called TRDDC (Tata Research Design and Development Center) way back in 1970s. This was in line with the Tata philosophy of setting up of premier research institutions-Indian Institute of Science, Tata Institute of Social Sciences and Tata Institute of Fundamental Research earlier in the century. The tools developed in TRDDC came in handy for the Y2K conversion projects. Ideas were also taken from Carnegie Mellon University's PQCC (Production Quality Compiler Compiler) to setup an assembly line process for doing Y2K conversions on a large scale. Once the Y2K problem had been successfully addressed, many of the customers wanted the TCS programmers to continue maintaining their applications.
If Y2K was a coincidence which helped TCS in particular and the Indian IT industry in general, the dot com burst was another such coincidence. Businesses in the West started laying off people and looking towards lower cost outsourcing models. The communications infrastructure was setup during the earlier dotcom boom. All the excess fiber laid by the telecom companies which went bankrupt, helped establish the concept of an ODC (Offshore Development Center). TCS established the first ODC for Nortel in the 1990s. A major ODC was setup for multiple businesses of GE. Along with ODCs came the domain knowledge or the business knowledge. Before the domain knowledge, TCS staff was limited to technical knowledge alone. Today, technical knowledge is almost a commodity while the business knowledge helps one move up the value chain. These ideas on the help Indian IT companies received, are endorsed by Thomas Friedman in his book "The World is Flat".
At the turn of the century, TCS was still less than a billion dollar company. Ram had taken over as CEO and was wondering how to grow the company. He setup a Think Tank to discuss strategy. Informal sessions with 6-7 key people including Professor Pankaj Ghemawat of Harvard Business School, often over late evenings and weekends at his home in Mumbai, played a key role here. Ram says that these meetings helped push the TCS structure towards a much more participative style with open discussions. In a span of just a few years, key people were appointed to head HR and Finance, support systems and processes were built (like Ultimax and iQMS), recruitment numbers and training were scaled up, a distributed delivery model, as well as distributed R&D were setup. Research facilities in 19 innovation labs were established in India, US and UK. Strategy was finally leading to deployment and it was reflected in billion dollar revenue in 2003.
"Experience Certainty" is the famous tagline which TCS hired a media company to come up with. To counteract the media savviness which its rival Infosys has garnered.
At the beginning of the century, started the acquisition vehicle to achieve growth. A key acquisition in 2002 was CMC (Computer Maintenance Corporation), a government company in India which earlier undertook large computerization projects for Indian Railways, real-time cargo handling for the container terminals in India and abroad, and an online transaction processing system for BSE (Bombay Stock Exchange) handling 5 million transactions a day.
In Aug 2004, TCS IPO was launched successfully. One of India's largest IPO, a lot of preparatory work had to be done to entangle it from its parent company Tata Sons, without increasing tax liability for either of the companies. And had to wait for the tax code to change.
Moving the acquisitions vehicle to other countries, TCS acquired Comicrom in Chile in 2005. Comicron handled most of the back office processing for banking transactions in Chile. It also acquired an Australian company FNS (Financial Network Services) in the same year with a retail banking package called Bancs24. It enabled TCS to win systems integration for SBI (State Bank of India) group for implementation of core banking. In India, about 50% of the banking transactions are processed by Bancs24. In 2008, TCS acquired CGS (Citicorp Global Services). TCS has 7000 people in Latin America of which 90% are locals, in China 1300 people of which 95% are local. In 2008, TCS opened its largest North American facility in Cincinnati, employing over 1000 locals.
TCS moved into the Bioinformatics area by developing BioSuite in 2004 in consultation with scientific institutions like CSIR (Council of Scientific and Industrial Research). Its low cost again validated the "doing more with less" philosophy. Keeping its eye on the future, where cloud computing is likely to become a utility like electricity, TCS has launched a subscription based service for SMBs (Small and Medium Businesses). Providing services like payroll and accounting on a pay-per-use basis.
In the area of healthcare in India, TCS developed hospital applications for Shankara Netralaya, a major eye hospital chain and established a portal called WebHealthCenter.com for online consultation and comprehensive healthcare information. In Indian literacy field, TCS computer-based functional literacy programme teaches adults quickly to develop the ability to read their native language without really knowing how to write it. Research shows that writing discourages adult learners. The software relies on cognitive capabilities of individuals to associate complex visual patterns representing words in Indian scripts with their meanings as well as their phonetic utterances.
Being environmentally conscious, TCS became one of India's first companies to report on carbon footprint. In 2008, only one of the two Indian companies to be included in the Dow Jones World Sustainability Index, with a highest possible rating of A+.
On a personal front, Ram was awarded the CNBC Asia Pacific's Asian Business Leader of the Year Award in 2002, the Business India Businessman of the Year Award in 2004, and India's civilian honor Padma Bhushan in 2006.
As an ex-employee of TCS, I was able to catch up with the tremendous amount of progress TCS made in the last 2 decades. My new found respect for Ram and the way and the extent he shaped TCS into. And also to write about it in a lucid fashion. It is not a self aggrandizing memoir. Truly an inspiring business story worth reading for gaining a general understanding of India's IT story.
0 of 0 people found the following review helpful.
Tata, TCS and why they will continue performing well!
By Prashant Bhatnagar
Nice and simple book. It talks about the story of TCS, Ram's personal journey, his vision for the future for technology as well as India.
These are the real heroes who decided to stick to India and one organisation and built it up from scratch. He could have opted for a traditional path of more salary in an MNC or worked in a developed country. But, he chose the path not frequented by most of us.
The book also reveals that the success of Indian IT is not just a fluke or lower costs, but a work of passionate people who have the vision, courage and self belief. Also, it give you a peek into the mind and working of an India-based IT company.
Lastly, and more importantly the book emphasise on the strong Tata culture to focus on values, ethics and play a fair game. what really inspires me is that Tata strong believe in giving back to the community. And this is not because it is fashionable nor to score some marketing brownie points. They genuinely believe in it.
0 of 0 people found the following review helpful.
A Fascinating Acount of aTurbulent Time
By Dr. Robert B. Chamberlain
The growth and advancements made by TCS under the leadership of FC Kohli and then S Ramadorai were truly impressive. As a client of TCS during much of this growth process, I found Ram's account of those years fascinating. I know Ram as well as most of the people he mentioned, and consider some of them to be friends; so, it was a somewhat nostalgic read for me. However, I believe that it would be interesting to anyone in business regardless of whether they know the players or not. There was occasionally a little too much industry-specific terminology for some readers; but, the approach to business, to clients, and to risk management would speak to anyone in the business world. It might be a little dry at times if you don't know the players; but, it is well worth the time to see what was done - what can be done - when the approach is client-centric.
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